As a follow up to our previous update about Nevada Senate Bill 317 (see our previous post), we want to make you aware of two important updates affecting workers’ compensation coverage in Nevada: the recent statewide rate increase effective March 1, 2026, and the upcoming payroll cap changes under SB 317.
1. Statewide 21.6% Increase to Workers’ Compensation Loss Costs (Effective March 1, 2026)
The Nevada Division of Insurance has approved a 21.6% increase in workers’ compensation loss costs. This adjustment is driven by several Nevada‑specific factors, including rising claim severity, elevated large‑loss activity—particularly in construction—and wage growth that is increasing benefit costs. Many policies renewing on or after March 1 have already begun to reflect these changes in their premiums. (https://www.businessinsurance.com/nevada-approves-21-6-increase-in-comp-loss-costs/)
2. SB 317 Payroll Cap Increase (Effective October 1, 2026)
SB 317 introduces a significant change to the payroll cap used in premium calculations. The current annual payroll cap of $36,000 will increase to an amount tied to the state’s maximum average monthly wage, which is updated annually. Based on the latest data, the updated cap will be approximately $98,433.60 per employee per year.
The Division of Insurance and NCCI anticipate this payroll‑cap increase will be overall premium‑neutral statewide, as corresponding rate decreases will be applied in future filings to offset the larger payroll base. However, the impact will vary by industry and individual policy, especially in sectors where employee wages commonly exceed the current cap (such as construction and manufacturing). (See PDF)
Please note:
- The payroll cap change does not impact any current policies.
- It will apply only to policies renewing on or after October 1, 2026.
What This Means for Your Business
While the upcoming payroll cap adjustment is expected to balance out in future filings, the March 1st statewide rate increase is already affecting premiums. You may see higher renewal pricing this year, even before SB 317 goes into effect.
As always, our team is here to help you understand these changes, review your upcoming renewals, and identify opportunities to manage costs.
If you have any questions or would like to discuss how this may impact your business, please reach out to us anytime.
Each month, Swarts Manning insurance experts cover relevant topics for your business. Stay tuned for more discussions about managing your insurance and industry-specific tips.
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